Thursday, 28 January 2021

CBSE Class 12 Accountancy - MCQ and Online Tests - Unit 6 - Accounting for Share Capital

CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 6 – Accounting for Share Capital

Every year CBSE conducts board exams for 12th standard. These exams are very competitive to all the students. So our website provides online tests for all the 12th subjects. These tests are also very effective and useful for those who preparing for competitive exams like NEET, JEE, CA etc. It can boost their preparation level and confidence level by attempting these chapter wise online tests.

These online tests are based on latest CBSE Class 12 syllabus. While attempting these our students can identify the weak lessons and continuously practice those lessons for attaining high marks. It also helps to revise the NCERT textbooks thoroughly.


 

CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 6 – Accounting for Share Capital

Question 1.
When a company issues shares at a premium, amount of premium may be received by the company :
(a) Along with application money
(b) Along with application money
(c) Along with calls
(d) Along with any of the above

Answer

Answer: (d) Along with any of the above


Question 2.
A joint stock company is :
(a) An artificial legal person
(b) Natural person
(c) A general person
(d) None of these

Answer

Answer: (a) An artificial legal person


Question 3.
Reserve share capital means :
(a) Part of authorised capital to be called at the beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Over subscribed capital
(d) Under subscribed capital

Answer

Answer: (b) Portion of uncalled capital to be called only at liquidation


Question 4.
Equity shareholders are :
(a) Customers
(b) Creditors
(c) Debtors
(d) Owners

Answer

Answer: (d) Owners


Question 5.
When full amount is due on any call but it is not received, then the short fall is debited to :
(a) Calls-in-advance
(b) Calls-in-arrear
(c) Share Capital
(d) Suspense Account

Answer

Answer: (b) Calls-in-arrear


Question 6.
Reserve capital means :
(a) A part of subscribed uncalled capital
(b) Reserve Profit
(c) A part of Capital Reserve
(d) A part of Capital Redemption Reserve

Answer

Answer: (a) A part of subscribed uncalled capital


Question 7.
The difference between subscribed capital and called up capital is called :
(a) Calls-in-arear
(b) Calls-in-advance
(c) Uncalled capital
(d) None of these

Answer

Answer: (c) Uncalled capital


Question 8.
Securities Premium is shown under which head in the Balance Sheet ?
(a) Reserve and Surplus
(b) Miscellaneous Expenditure
(c) Current Liabilities
(d) Share Capital

Answer

Answer: (a) Reserve and Surplus


Question 9.
Which statement is issued before the issue of shares ?
(a) Prospectus
(b) Articles of Association
(c) Memorandum of Association
(d) All of these

Answer

Answer: (d) All of these


Question 10.
Shares may be issued :
(a) At par value
(b) At FYemimum
(c) At Discount
(d) Both (a) & (b)

Answer

Answer: (d) Both (a) & (b)


Question 11.
Capital included in the liabilities of a company is called :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital

Answer

Answer: (d) Paid-up Capital


Question 12.
An issue of shares which is not a public issue but offered to a selected group of persons is called :
(a) Public offer
(b) Private placement of shares
(c) Initial public offer
(d) None of these

Answer

Answer: (d) None of these


Question 13.
If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the Share Capital Account should be debited with :
(a) ₹ 8
(b) ₹ 10
(c) ₹ 6
(d) ₹ 2

Answer

Answer: (a) ₹ 8


Question 14.
Company can utilise securities premium for :
(a) Writing off loss incurred on revaluation of asset
(b) Issuing fully paid bonus shares
(c) Paying divided
(d) Writing off trading loss

Answer

Answer: (b) Issuing fully paid bonus shares


Question 15.
Premium on issue of shares is shown on which side of the Balance sheet.
(a) Assets
(b) Liabilities
(c) Both
(d) None of these

Answer

Answer: (b) Liabilities


Question 16.
J. Ltd. re-issue 2,000 shares which where forfeited by crediting share forfeiture account by ₹ 3,000. These shares were re-issued at ₹ 9 per share. The amount transferred to capital reserve will be :
(a) ₹ 3,000
(b) ₹ 2,000
(c) ₹ 1000
(d) Nil

Answer

Answer: (c) ₹ 1000


Question 17.
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of…….
(a) 10 Rs. per share
(b) 8 Rs. per share
(c) 5 Rs. per share
(d) 2 Rs. per share

Answer

Answer: (d) 2 Rs. per share


Question 18.
Z & Co. forfeited 100 shares of 10 Rs. each for non-payment of final call of 2 Rs. per share. All the forfeited shares were re-issued at 9 Rs. per share. What amount will be transferred to Capital Reserve A/c ?
(a) 700 Rs.
(b) 800 Rs.
(c) 900 Rs.
(d) 1,000 Rs.

Answer

Answer: (a) 700 Rs.


Question 19.
Secrities Premium can not be applied :
(a) For paying dividend to members
(b) For issuing bonus shares to members
(c) For writing off preliminary expenses of company
(d) For writing off discount on issue of debentures

Answer

Answer: (a) For paying dividend to members


Question 20.
Forfeiture of shares results in the reduction of:
(a) Paid-up Capital
(b) Authorised Capital
(c) Fixed Assets
(d) Reserve Capital

Answer

Answer: (a) Paid-up Capital


Question 21.
When shares are forfeited, the Share Capital Account is debited with:
(a) Nominal value of Shares
(b) Market value of Shares
(c) Called-up value of Shares
(d) Paid-up value of Shares

Answer

Answer: (c) Called-up value of Shares


Question 22.
When a company issues fully paid shares to promoters
for their services, the journal entry will be:
(a) Bank A/c Dr.
To Share Capital A/c
(b) Good will A/c Dr.
To Share Capital A/c
(c) Promoters Personal A/c Dr.
To Share Capital A/c
(d) Promotion Expenses A/c Dr.
To Share Capital A/c

Answer

Answer: (b) Goodwill A/c Dr.
To Share Capital A/c


Question 23.
Amount of calls in Arrear is :
(a) Added to capital
(b) Deducted from share capital
(c) Shown on the assets side
(d) Shown an the equity and liability side

Answer

Answer: (b) Deducted from share capital


Question 24.
A company has…………
(a) Separate Legal Entity
(b) Perpetual Existence
(c) Limited Liability
(d) All the above

Answer

Answer: (d) All the above


Question 25.
The liability of members in a company is :
(a) Limited
(b) Unlimited
(c) Stable
(d) Fluctuating

Answer

Answer: (a) Limited


Question 26.
According to Table E of the Companies Act, 2013 interest on calls in arrears charged should not exceed :
(a) 5% p.a.
(b) 6% p.a.
(c) 8%p.a.
(d) 10%p.a.

Answer

Answer: (d) 10%p.a.


Question 27.
Equity shareholders are :
(a) Creditors of the company
(b) Owners of the company
(c) Customers of the company
(d) None of these

Answer

Answer: (b) Owners of the company


Question 28.
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to :
(a) Profit & Loss A/c
(b) Capital Reserve Account
(c) General Reserve Account
(d) None of these

Answer

Answer: (b) Capital Reserve Account


Question 29.
If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit is transferred to :
(a) Capital Reserve
(b) Revenue Reserve
(c) Profit & Loss A/c
(d) None of these

Answer

Answer: (a) Capital Reserve


Question 30.
Under the provisions of Companies Act, company can issue:
(a) Only equity shares
(b) Only preference shares
(c) Preference shares and equity shares
(d) None of these

Answer

Answer: (c) Preference shares and equity shares


Question 31.
Discount allowed on reissue of forfeited shares is debited to:
(a) Share Capital A/c
(b) Share Forfeiture A/c
(c) Profit & Loss A/c
(d) General Reserve A/c

Answer

Answer: (b) Share Forfeiture A/c


Question 32.
Reight shares are the shares, which :
(a) Are issued to the Direction of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to the vendors for purchasing assets

Answer

Answer: (b) Are issued to existing shareholders of the company


Question 33.
Total amount of liabilities side includes :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital

Answer

Answer: (d) Paid-up Capital


Question 34.
A company issues its shares at premium under which Section of Indian Companies Act, 2013 ?
(a) 78
(b) 79
(c) 52
(d) 53

Answer

Answer: (c) 52


Question 35.
Shares can be forfeited :
(a) For failure to attend meetings
(b) For non-payment of call money
(c) For failure to repay the loan to the Bank
(d) For which shares are pledged as a security

Answer

Answer: (b) For non-payment of call money


Question 36.
The portion of the authorised capital which can be called-up only on the liquidation of the company is called:
(a) Issued Capital
(b) Called-up Capital
(c) Uncalled Capital
(d) Reserve Capital

Answer

Answer: (d) Reserve Capital


Question 37.
Shareholders get:
(a) Interest
(b) Dividend
(c) Commission
(d) Profit

Answer

Answer: (b) Dividend


Question 38.
Premium on issue of shares is a :
(a) Capital Gain
(b) Capital Loss
(c) General Profit
(d) General Loss

Answer

Answer: (a) Capital Gain


Question 39.
Share Application Account is :
(a) Personal Account
(b) Real Account
(c) Nominal/ Account
(d) None of these

Answer

Answer: (a) Personal Account


Question 40.
Share Allotment Account is :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these

Answer

Answer: (a) Personal A/c


 

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